Changing How We Live With The Blockchain Series: Pushing For A Much Needed Financial Revolution

I had originally thought I would skip this industry in my “Blockchain series” but with a couple of recent events, I thought it would be unfair not to highlight the greatest use case of the blockchain and cryptocurrencies. In fact, in hindsight, an in-depth research on this topic should probably have been my first article on this series.

The 100 Billion Dollar Goal

Over the weekend, Bittrex’s BTC wallet was put under maintenance in preparation for the ongoing HF. While this was the standard security feature for the customers’ interest, it highlighted the current situation of the industry. Already, payment processors, gateways, BTC-accepting e-commerce sites have been warned to suspend BTC transactions until the coast is clear. While the ongoing frictions are in reality for the progress of BTC, it undermines the huge step blockchain and cryptocurrencies have taken in overtaking the traditional financial system.

Created in 2009 by Satoshi Nakamoto, his goal was to usurp the fiat system that had thrown the world into turmoil. Bitcoin’s goal was to serve as a peer-to-peer electronic currency/cash that would change the way we transact as humans.

The pseudo-anonymous virtual creation with hundreds of similar digital currencies is now a 100 billion dollar industry. All, though with various functions, with the primary goal of revolutionizing the way we exchange value.

The Issue With The Current Financial System

To understand why there was a need for such invention, we have to remind ourselves of the state of the traditional financial system.

Here’s an apt quote from The Guardian:

The heart of the economic disorder is a world financial system that has gone rogue. Global banks now make profits to an extraordinary degree from doing business with each other. As a result, banking’s power to create money out of nothing has been taken to a whole new level.

The cost of remittance is absurdly high. For example in 2014, the cost of sending money to Africa was $1.8billion! And despite several promises, this has not changed till now.

These and many more issues plaguing the global financial system led to a burning need for a change.

Blockchain To The Rescue

There are several use cases of blockchain in the financial industry. The biggest of them all is running a (digital) bank that replaces/competes with the efforts of physical traditional banks.

Banks On The Blockchain

A couple of months ago, Polybius raised over $16m hoping to become the first digital bank in Europe. The digital initiative proposed a blockchain-based solution that would provide all the normal functions of a traditional bank while being accessible anywhere.

Here’s a short video describing what they do:

Already, Blockchain.info message to customers in pursuance of Bitcoin’s goal was the ability to be one’s bank.

Also, before their recent pivot, Circle raised a lot of money to provide digital retail banking. All based on the blockchain.

While the aforementioned use cases are attempting to displace traditional banks, some blockchain- based solutions are being offered to traditional banks attempting to bring them to the realities of the 21st century. Ripple and VaultOs (an operating system built on the blockchain for banks) are examples of these enabling use cases.

Payment Gateway and Processors

In the past one month. a lot of interest have been shown in this financial niche with companies raising hundreds of millions of dollars.

Debit Cards’ Race

TokenCard raised over $16million in minutes. Its' aim is to be the first VISA –powered debit card that would help crypto holders transact anywhere in the world. Immediately after that, Monaco raised over $3million in a few days with a proposal to deliver a Etheruem and Bitcoin enabled VISA card. While a number doubted Monaco’s claims, there was no doubt that the need for a crypto supporting debit card was on the priority list of crypto tokens’ holders.

These new brands join existing brands like Payza, Xapo etc in the race to bring cryptocurrencies to the mainstream as the new form of exchanging value.

Payment and Money Transfers

The Global remittance industry is worth over $600 billion and yet still riddled with a lot of defects. Not only is there a lot of back and forth communication between the sender, receiver and third party, the remittance fee is absurdly outrageous.

With faster, cheaper and anonymous offerings, Bitcoin and other currencies offer a more powerful solution.

Already, bitcoin-powered remittances have increased in volume to countries like Philippines (tired of PayPal autocracy), Venezuela (dying national currency), South Korea and India.

Abra, BitPesa, and Circle are prominent money transfers that are tackling the huge international remittances industry.

New coins like OmiseGo have also raised funds to join this lucrative niche.

The Giants Are Not Sleeping

Unlike other traditional industries like the media and transportation that paid a blind eye to rising innovations, banks are paying rapt attention to the disruptive nature of the blockchain.

In fact, the banks have been heavily funding their own disruption

The reasons for this surprising action are not far-fetched. Apart from fear, the blockchain offers a lot of benefits to banks and enables them to scale their operations faster.

Applying blockchain technologies could help reduce banks' infrastructural costs by $15-20 billion by 2022, according to a 2015 report.

As far back as 2014, global financial entities like Nasdaq, Citi, and Visa have poured in large amounts of capital to further develop blockchain solutions for the industry.

Already coins like Ripple with a throughput equaling that of VISA are partnering with banks en masse and are already transacting several millions of dollars in transactions monthly.

Other banks like Goldman Sachs and Morgan Stanley have joined the Enterprise Ethereum Alliance while over 70 financial institutions are part of the R3 Consortium.

Conclusion

Blockchain and digital currencies have a huge role to play in ushering in a new financial dawn and there already exists several use cases to make this a reality.

While there are obstacles like regulatory bottlenecks and cyber security concerns, it will be interesting to see how all these innovations play out.

Although the industry is still a young one, what is certain is that there is an urgent need for the urgent replacement of the current financial system. And the blockchain is a viable option.

Over to you:

Which cryptocurrencies do you have? Have you made a purchase with any of them before?

Thank you friend ! It is very pleasant and interesting to read information about the system in which we ourselves are tied, I'm trying to deal with this system, but it's difficult! Such thoughts, articles, comments - that I can find in your blog give me the confidence to think that I'm on the right track.
I have not read the history of bitcoin before, but now I know it and I like to read the information on your page, namely the opinions of other people who help us to be closer to the revolutionary actions in the world.

This is a very well written and informative article and once again you have delvered @infovore keep up the good work, upped.
These crypto debit cards are great as it will make life easier for us and I hope that steem dollars or steem debit card will be available soon. Many uninformed people see these as ponzi.

Thanks. It will be interesting to see a Steem-backed Debit card. There are so many content creators so it makes perfect economic sense for such a need. The recent stability of SBD = $1 will make it a perfect fit.

The current financial system is a scourge on society. It may not happen soon enough for me, but I hope that some day the blockchain or some other futuristic technology will liberate the world from this terrible system.

Thank you for this and i know that with this level of awareness people will know cryptocurrencies has come to stay . I actually never believed in all this digital currencies not until i joined this platform and other platforms that talks about digital currencies.
Thank you for this wonderful articles it shows your level of knowledge and understanding when it comes this.
Also have started following you because i want to learn more from you. Please kindly help to resteem, up vote and even follow me I will appreciates you help to resteem some of my articles i know they will be a blessing to you after reading them @optimistdehinde.
Also thank you for your past up vote i really cherish it and am thankful. One love. Writing another article presently on PERSPECTIVE. Watch out.

As I have said elsewhere and will continue to say, "The keyword in cryptocurrency is CRYPTO. We need to keep it that way." If we allow blockchain based financial system to fall back under the crushing dominance of the very same traditional banking systems we are on the verge of leaving behind ... well. There will be no escaping that, of this we can be sure.

It's an exciting and precarious time. Our choices now decided the future.

@infovore - A masterly article on the deficiencies in the FIAT money system, why the banks still propagate it and the block-chain based crypto alternative. Having been an executive with multinational responsibilities, I have seen the leveraging of debt that lead to the debt bubble burst in 2008. It damaged the world economy so much. There was nothing much that people like you and I could do because, as you have mentioned, debt was a major business carried out by major banks. I know that there are a lot of teething issues and acceptance issues in crypto currency scenario right now but as you have pointed out, ultimately, the major driver will be the cost of transactions. Banks themselves will adopt this when the costs of FIAT transactions start affecting their business in a major way. Things like crypto debit cards etc that make acceptability for the masses better will certainly help in the process.. I do hold crypto currency but nothing great yet. It is sadly a long process to convert crypto to FIAT money in my location. Crypto based debit cards are not available here yet. Keeping my fingers crossed that it happens in near future. Thank you for this informative article. Upvoted.

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Wow. What a concise reply. Thanks for backing my point about the current teething problems cryptos face. In relation to the debt portfolio, there is little the common man can do. Whats more saddening is that the debts aint being channeled to better the society.

100 billion seems like an attainable goal @infovore. During this period where people are uncertain and are slightly panicking while exchanges and online wallets freeze bitcoin transactions to increase security but after this time of uncertainty passes the markets should take off. (I think) So this may be some people's last chance (or maybe in November) to get into crypto while it remains cheap.

I've been looking at Polybius, and it will help so much in the future. I think they have a great vision and as soon as they get their banking license, it will take off, so it is something great to invest in and look into.

Regarding the debit cards I've been currently using wirex, and it is great to see that a number of contenders are rising to hopefully add some competition and push out a better product for us consumers. They are convenient rather than converting bitcoin to fiat yourself.

Yeah. 100bn market cap happened a few weeks ago. Hopefully, it would get back there and beyond in the next couple of weeks.
I have never used a Bitcoin card before cos of my location but hopefully I do hope to lay my hands on one asap. Good one for you!

fantastic info on many new aspects the blockchain will change our life and the most, hopefuly will change our finance system. I see however the danger that banking institutions will however try to crash the new coming..

Congratulations! This post has been upvoted from the communal account, @minnowsupport, by imarketer from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.

@infovore my 9ja bro hope you will be active again, miss your post-reach me on steem chat.
In addition to my comment, feel free to join the conversation in my new post about future of steem...it will motivate you more about steem . More success to you.

Very informative @infovore. I must say; Revolution has indeed arrived in the world of digital currency. With this great piece of information, we will have the privilege of partaking in this amazing course of history.
Light has been shone to lighten the minds of the ignorant. keep the light shining @infovore

@infovore wow i'm truly and deeply so amaze on your article , very informative on details base on the current events on how bitcoin change the future of the world of cryptocurrencies .it will change the game play on the future of world wide businesses, the world is changing..we must be ready..

use your bitcoin wisely, bank more bitcoin on your respective accounts.. and other crypto coins. i tell you this will help us on our future.

Thank you for this great article. Another company to look at is TenX (https://www.tenx.tech/). They are also working together with Visa to issue cards with which people will be able to pay with ERC20 token.

I think this could also have a major impact on the Bitcoin price development within the next few years. What do you think, guys and gals?

Yeah blockchain is definitely a future. At first I was very sceptic about this idea of digital currencies but as I started to look deeper into it, reading different articles, people soon started to open my eyes and realise how bad our financial system is at the moment. The way it's going and how it's becoming more and more popular I think in 50 years all the financial world will be completely turned over. USD / EUR / GBP / YEN all those will be relics of those "old times" and digital currencies will completely conquer the world. Maybe it will be bitcoin , maybe not - who knows. But the change has begun and we are witnessing it's unveiling.

Great article! For me, cryptocurrency is not only an investment, but a way of life, an ideia, a revolution, this is why we don't have to keep looking at the price in fiat, but the value of the crypto itself.

I wonder why the transaction costs are so high in South Africa? Does anyone know? I have managed to buy through Xapo but believe Luno is much easier and there are less hassles. I don't know and haven't tried to buy anything yet or to redeposit to my bank account as the fees are so high. Any suggestions?

I have several cryptocurrencies such as bitcoin, etherum, ripple and tbc. I make money with bitcoins and tbc . The ripple and etherum i'm holding until I build up enough to sell on the exchange or I use the to bet on crypto games that I've been losing alot at lately. So I think I might need to start just saving them lol. But etherum and ripple I get free from faucets so I'm not really losing my money but it is money lost.

@infovore, i was actually looking forward to this post and i can boldly said that it is an informative piece written in a high class of writing. i am also educative frm it and i quite agree with you that certain changes has to be made especially in replacing the current financial system, but as it stands, the common man has a lot to loss. dont you think so? because if this is enclosed within a class, then majority will not see the benefit. this is a very great post @infovore. thanks for sharing

The power is with the people. Dead to government Monopoly, dead to Central banks ripoff. The blockchain technology has improved businesses and money transfer from America to Asian, from Europe to Africa. #dancing

I totally agree with all your summations with regards to above subject matter. However, my fear for blockchain industry is as a result of high and very unpredictable nature of its volatility. Should credit/debit cards continue to be built around them, i am afraid sooner than later customers' disgruntlement is bound to arise as a result of high volatility of the market. A customers $10000 can worth less than $1000 within seconds and what if the customer is in a hurry to use the money and cannot wait for price rebound which no one knows when it will occur.

I think if cryptos are to be incorporated in our everyday use, then volatility issue should be comprehensively looked into and possibly solved.

Hi @invore, I have no any account of crytocurrency yet. I just ewad about it when I have been a member on Steemit 12 days ago. I totally get nothing to your post. I am here to read some posting to have a new knowlesge that taking me to the one who understand themtopoc you're writing about.